Sensex Devta

The Greeks : Delta, Gamma , Theta, Vega and Rho

Delta : delta measures the sensitivity of the option value to changing stock price. Delta of any option gives an idea about the number of unit of a stock that should be held by any investor for creating a riskless hedge.

Gamma : the gamma of any option is rate of the change of the option s delta with respect to the price of the underlying stock.

Theta : Theta measure the option respect of change in expiration time . if stock price and other factors of the option pricings constant model are constant .

Rho : Rho can be measure of the sensitivity of option value to change in interest rates .

Vega : vega measures the sensitivity of the option premium with respect to the volatility of the asset .